HOUSTON--(BUSINESS WIRE)--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net loss of $14.7 million ($(1.01) diluted loss per share) on revenue of $55.0 million for its fourth quarter ended December 31, 2015, compared to net loss of $(0.1) million ($(0.01) diluted loss per share) on revenue of $124.8 million for the fourth quarter ended December 31, 2014.
The company had a revenue backlog of $232.4 million and a labor backlog of approximately 1.9 million hours at December 31, 2015, including commitments received through February 19, 2016, compared to a revenue backlog of $135.1 million and a labor backlog of 1.3 million hours reported as of September 30, 2015. Our backlog at December 31, 2015 includes approximately $112.0 million of new build construction acquired in the LEEVAC acquisition on January 1, 2016. We expect to recognize revenue from our backlog of approximately $207.9 million and $24.5 million during the years 2016 and 2017, respectively.
|Cash and cash equivalents||$||34,828||$||36,085|
|Total current assets||115,869||169,849|
|Property, plant and equipment, net||200,384||224,777|
|Total current liabilities||37,901||72,765|
|Total shareholders’ equity||$||257,197||$||285,798|
- Included in the net loss for the quarter ended December 31, 2015 were the following:
- $10.3 million ($6.7 million after-tax, or $0.46 per share) related to a decrease in the contract price due to final weight re-measurements and our inability to date to recover certain costs on disputed change orders related to a large deepwater project which was recently delivered.
- $7.6 million ($5.0 million after-tax, or $0.34 per share) increased contract losses resulting from increases in our projected unit labor rates for one of our fabrication facilities. Our increases in unit labor rates were driven by our expected inability to absorb fixed costs due to decreases in expected oil and gas fabrication activity.
- $0.6 million ($0.4 million after-tax, or $0.03 per share) for a non-cash asset impairment charge related to equipment that was held for sale at December 31, 2015 and sold during the first quarter of 2016.
- Due to the severity of the industry downturn, management has recommended and our board of directors has approved a reduction of our quarterly dividend from $0.10 per share to $0.01 per share and a temporary suspension of our stock repurchase program in an effort to conserve cash.
- Our balance sheet position remains stable with $34.8 million in cash, no debt, and working capital of $78.0 million. We will continue to monitor and maintain a conservative capital structure as we navigate through the current oil and gas downturn.
The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, February 26, 2016, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company’s financial results for the quarter ended December 31, 2015. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.599.4883. A digital rebroadcast of the call is available two hours after the call and ending March 4, 2016 by dialing 1.888.203.1112, replay passcode: 6604496.
Gulf Island Fabrication, Inc., based in Houston, Texas, with fabrication facilities located in Houma, Louisiana, and San Patricio County, Texas, is a leading fabricator of offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. These structures include jackets and deck sections of fixed production platforms; hull and/or deck sections of floating production platforms (such as tension leg platforms “TLPs”, “SPARs”, “FPSOs”, and “MinDOCs”), piles, wellhead protectors, subsea templates and various production, compressor and utility modules, offshore living quarters, towboats, liftboats, tanks and barges. The Company also provides offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, heavy lifts such as ship integration and TLP module integration, loading and offloading of jack-up drilling rigs, semi-submersible drilling rigs, TLPs, SPARs, or other similar cargo, onshore and offshore scaffolding, piping insulation services, and steel warehousing and sales.
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,||September 30,||December 31,||December 31,|
|Cost of revenue||72,590||113,952||75,368||321,276||462,083|
|Gross (loss) profit||(17,572||)||10,808||(7,837||)||(15,156||)||44,556|
|General and administrative expenses||4,439||
|Operating (loss) income||(22,613||)||752||(18,235||)||(38,614||)||23,947|
|Other income (expense):|
|Other income (expense)||
|(Loss) income before income taxes||(22,647||)||793||(18,266||)||(38,733||)||23,824|
|Net (loss) income||$||(14,667||)||$||(111||)||$||(12,137||)||$||(25,364||)||$||15,320|
|Per share data:|
|Basic and diluted (loss) earnings per share - common shareholders||$||(1.01||)||$||(0.01||)||$||(0.84||)||$||(1.75||)||$||1.05|
|Cash dividend declared per common share||$||0.10||$||0.10||$||0.10||$||0.40||$||0.40|
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|Twelve Months Ended December 31,|
|Cash flows from operating activities:|
|Net (loss) income||$||(25,364||)||$||15,320|
|Adjustments to reconcile net (loss) income to net cash provided by operating activities:|
|Bad debt expense (recovery)||448||
|Allowance for doubtful accounts||
|(Gain) loss on sale of asset||(10||)||86|
|Deferred income taxes||(14,061||)||8,264|
|Compensation expense - restricted stock||2,707||1,139|
|Changes in operating assets and liabilities:|
|Contracts receivable, net||31,792||14,963|
|Costs and estimated earnings in excess of billings on uncompleted contracts||14,167||(2,262||)|
|Billings in excess of costs and estimated earnings on uncompleted contracts||(11,685||)||(16,240||)|
|Prepaid expenses and other assets||1,092||352|
|Accrued contract losses||8,678||817|
|Accrued employee costs||(971||)||(154||)|
|Current income taxes||615||15|
|Net cash provided by operating activities||$||10,615||$||32,110|
|Cash flows from investing activities:|
|Capital expenditures, net||(6,018||)||(27,658||)|
|Proceeds on the sale of equipment||11||929|
|Net cash used in investing activities||(6,007||)||(26,729||)|
|Cash flows from financing activities:|
|Borrowings against notes payable||
|Payments on notes payable||
|Payments of dividends on common stock||(5,865||)||(5,865||)|
|Net cash used in financing activities||(5,865||)||(5,865||)|
|Net (decrease) increase in cash and cash equivalents||(1,257||)||(484||)|
|Cash and cash equivalents at beginning of period||36,085||36,569|
|Cash and cash equivalents at end of period||$||34,828||$||36,085|
|Supplemental cash flow information:|
|Income taxes (received) paid, net||$||(152||)||$||225|
|Schedule of noncash financing activities|
|Reclassification of property, plant and equipment to assets held for sale||$||4,805||$||
Reclassification of assets to held for sale to inventory